Morning News Call - India, December 19

Reuters Staff

7 Min Read

(Morning News Call - India edition will not be published through the year-end
holiday season from December 25, 2017 to January 1, 2018. Normal service will
resume from January 2, 2018. Season’s Greetings and Happy New Year.)
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FACTORS TO WATCH
10:00 am: Commerce Minister Suresh Prabhu and Commerce Secretary Rita Teotia
at CII Services Conclave in New Delhi.
10:30 am: NITI Aayog CEO Amitabh Kant, Delhi Transport Minister Kailash
Gahlot at International Conference on Electric Vehicles in New Delhi.
11:00 am: Winter session of parliament continues in New Delhi.
11:30 am: Yes Bank press conference on partnership with European Investment
Bank for renewable energy projects financing in New Delhi.
2:00 pm: DIPP Secretary Ramesh Abhishek at IVCA Power Meet in New Delhi.
5:00 pm: Aviation Minister P. Ashok Gajapathi Raju at International
Conference for Women in Aviation & Aerospace in New Delhi.
GMF: LIVECHAT - 2018 INVESTMENT OUTLOOK
We get an outlook for markets in the year ahead with David Page, senior
economist at AXA Investment Managers at 1530 IST. To join the conversation,
click on the link: here
INDIA TOP NEWS
Dr. Reddy's resolves U.S. probe over child safety of drug packaging
Dr. Reddy's Laboratories will pay $5 million to resolve U.S. claims that the
Indian company sold prescription drugs in the United States in packaging that
was not tested for child safety, according to court papers filed on Monday.
Apple ups iPhone prices in India as tax increase makes imports costlier
Apple has increased the prices of most of its iPhone models sold in India
after the government last week raised taxes on imported phones in a bid to boost
domestic manufacturing.
GAIL renegotiating LNG deals with U.S. companies- minister
Indian gas firm GAIL (India) is renegotiating its liquefied natural gas
purchase deals with U.S.-based Cheniere Energy and Dominion Cove Point, Oil
Minister Dharmendra Pradhan told lawmakers on Monday.
India's JSW to buy 49 pct stake in Brahmani River Pellets
A unit of India's JSW Group said it will buy a 49 percent stake in iron ore
pellets manufacturer Brahmani River Pellets for an undisclosed amount, after
Tata Steel, which was a front-runner to acquire the company, dropped out.
GLOBAL TOP NEWS
U.S. blames North Korea for 'WannaCry' cyber attack
The Trump administration has publicly blamed North Korea for unleashing the
so-called WannaCry cyber attack that crippled hospitals, banks and other
companies across the globe earlier this year.
World Bank raises China 2017 growth forecast, maintains 2018 outlook
The World Bank raised its forecast for China's economic growth in 2017 to
6.8 percent from 6.7 percent it projected in October, as personal consumption
and foreign trade supported growth.
Hershey, Campbell bet nearly $6 bln on healthy snacks makers
Campbell Soup and Hershey on Monday unveiled deals totaling nearly $6
billion to buy healthy packaged snacks makers, the latest example of big U.S.
food companies trying to cater to an increasing American preference for healthy
foods.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
The SGX Nifty Futures was trading at 10,420.50, up 0.2 percent from its
previous close.
The Indian rupee will likely edge higher, as the dollar slipped amid doubts
over the overall impact of the proposed U.S. tax overhaul on the world’s largest
economy.
Indian government bonds will likely open lower as the central bank will
auction the benchmark note this week instead of a new 10-year paper. Debt sale
from states later today would also put pressure on prices, traders said. The
yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in
a 7.16 percent-7.21 percent band, a dealer with a primary dealership said. The
note closed at 97.35 rupees, yielding 7.18 percent yesterday.
GLOBAL MARKETS
• Wall Street hit record closing highs on Monday as optimism increased about
the likelihood of lower corporate tax rates as the Republican tax bill moved
closer to passage.
• Asian stocks advanced after a record-setting session on Wall Street on
bets that U.S. lawmakers would pass sweeping tax legislation, while the dollar
treaded water as traders were circumspect about the bill's economic impact.
• The dollar remained mired in its recent ranges, as optimism that the U.S.
tax reform bill would pass duelled with concerns about what its ultimate effect
on growth would be.
• The margin between U.S. shorter-dated and longer-dated Treasury yields
widened on Monday from its slimmest in a decade as traders booked profits on
curve-flattening positions tied to the view the Federal Reserve would raise
interest rates further.
• Oil markets were little changed, with unplanned outages and voluntary
production restraint led by OPEC supporting prices, while soaring output in the
United States capped crude.
• Gold traded little changed in early Asian trade amid a steady dollar with
investors monitoring the progress of the U.S. tax reform bill.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.19/64.22 December 15 -$67.29 mln $2.65 mln
10-yr bond yields 7.18 pct Month-to-date -$526.56 mln $346.22 mln
Year-to-date $8.17 bln $26.08 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.2000 Indian rupees)